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China-Biotics, Inc. Reports Record Quarterly Net Sales for the Third quarter of Fiscal Year 2011
Date:2/9/2011

ofessional fees, and staff costs. As of December 31, 2010, the Company had a total of 459 employees, compared with 475 as of December 31, 2009 and 447 as of September 30, 2010, respectively. G&A expenses as a percentage of net sales were 9.9% in the third quarter of fiscal year 2011, compared with 6.4% for the third quarter of fiscal year 2010.

Selling expenses for the third quarter of fiscal year 2011 were $3.9 million, compared with $4.1 million in the third quarter of fiscal year 2010. Selling expenses as a percentage of revenue decreased to 11.9% for the third quarter of fiscal year 2011 from 17.8% in the third quarter of fiscal year 2010. The decrease in actual selling expenses and selling expenses as a percentage of revenue, partially reflected the savings resulting from selling the Company's retail products through established distributors instead of increasingly more expensive retail outlets.  

Research and development (R&D) expenses increased to $1.9 million from $0.8 million in the third quarter of fiscal year 2010. R&D expenses as a percentage of revenue were 5.8%, as compared to 3.3% for the third quarter of fiscal year 2010. The Company established a strong research and development team supported by over 10 PhDs and 30 masters' degree holders. Dr. Chungchang Tao, formerly with Coca-Cola's Global Innovation & Technology Center in Shanghai, joined the Company as its R&D Director. Dr. Tao holds a PhD in Biological & Agricultural Engineering from the University of Idaho. In addition, the number of probiotics strains in the Company's proprietary strain library has now increased to over 1,000. The Company will continue to invest in its core technology of bacteria cultures and preservation, while expanding its product line and applications to address specific health problems.

Total operating expenses for the third quarter of fiscal year 2011 were $8.9 million compared with $6.4 million in the third quarter of
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SOURCE China-Biotics, Inc.
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